NBAD gets market-making licence

The Securities and Commodities Authority, or SCA, has issued the first licence for the practicing of market-making activity to the National Bank of Abu Dhabi, or NBAD.

NBAD is expected to start practicing this activity during the thrid quarter of this year after finalising some technical requirements in collaboration with UAE markets.

The issuance of the first market-making licence comes at a time UAE equity markets are witnessing recovery and growth and weeks before the actual upgrade of UAE markets to Emerging Market status by the Morgan Stanley Capital International Index, a move which will give a significant boost to corporate investment in UAE equity markets and greater depth and balance to local stock markets.

The SCA Board Resolution concerning market-maker was issued in August 2012, following in-depth study of all the various aspects of the resolution and the outlining of the role of the various parties involved.

The preparing and issuance of the market-maker regulation was done in stages and according to best international practices.

— haseeb@khaleejtimes.com